Release: Churchill Mining : Re: press speculation

(28 September 2009)--The Company notes recent press speculation together with the increase in its share price and advises that it has received three separate and unconnected non-binding approaches, all of which are at various stages. Two of these approaches relate to the possible acquisition of specific projects within Churchill, and the third relates to a possible offer for the Company as a whole.

The Company will continue discussions with all three of these parties, which may or may not lead to one or more offers for the Company or certain of its projects. The approaches are conditional on due diligence and at this stage there is no certainty that any will progress to completion.

The Company would also like to clarify that there is no basis to the speculation in the press linking the Company to BHP Billiton. (end of release)

Editor?s note:
Churchill's 75%-owned East Kutai Coal Project (EKCP) is located in the Kutai Timur Province of East Kalimantan. The company controls 4 IUP Exploitation blocks totaling more than 350 square kilometers. Within the concession areas, the dominant geological formation is the Wahau Formation, although the Balikpapan Formation and the Batu Ayau formation also outcrop in the southern areas.

The company said on August 2009 statement said that analysis by independent advisor SMG Consultants had upgraded EKCP?s Total Measured and Indicated Resource to 1.333 billion tones, which consisted of 556MT of Measured Resource and 777MT of Indicated Resource.

With Inferred Resource of 1.148 billion tones, EKCP?s Total Categorized Resource now totaled 2.481 billion tones.

The Sendawar CBM project in Kalimantan, Indonesia, covers more than 800 square kilometres of prospective ground and lies in close proximity to two operating open-cut coal mines. The project is located approximately 50 km from the Mahakam River.

During Churchill's coal exploration programme, data collected during geophysical and resistivity work, along with data collected from previous oil and gas exploration in the area, indicated that the area was highly prospective for Coal Bed Methane.

Churchill (70% of the CBM project) along with its Indonesian partner RMU (30%) were granted Indonesia's first CBM JEA license in September 2007. The CBM project has the potential to host Gas-in-Place of 5.6 trillion cubic feet.